rainydaze
New Member

Education

Scholarships/Grants that exceed the amount of qualifying educational expenses become taxable income to the student.  For example, if your scholarships and grants are $10,000, but your qualifying educational expenses are only $7,000, you would owe taxes on the remaining $3,000.

Keep in mind qualifying amounts are for tuition and fees, books, equipment - room and board as well as transportation are not considered qualifying education expenses.